Business Owners Policy in Massachusetts
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Business Owners Policy in Massachusetts
What is a business owners policy?
Many small businesses in Massachusetts are exposed to the same common potential risks. For these common risks, businesses may be able to insure with a business owners policy.
The purpose of a business owners policy (BOP) is to meet the basic insurance needs of small businesses with affordable coverages. Policies usually come with several important coverages.
Which Massachusetts small businesses should consider BOP insurance?
BOP insurance is primarily for small businesses with straightforward insurance needs. For many businesses in Massachusetts, this is the first type of commercial insurance policy to consider.
If a business doesn’t have uncommon or extensive insurance needs, a BOP may be all that’s needed.
Do home businesses need to carry BOP insurance?
Certain insurance coverages can be helpful regardless of a business’s location or industry. Even home businesses may need some of these coverages, and a BOP policy tends to be the right choice.
What protections can businesses get through a BOP?
BOPs typically come with a fairly uniform set of coverages. While there can be exceptions, the vast majority of these policies have three main protections:
- General Liability Coverage: May cover routine accidents, leading to third-party injuries or damage to their property.
- Commercial Property Coverage: May cover buildings and other tangible property against damage or loss.
- Business Interruption Coverage: May cover prolonged loss of revenue if income is lost following a covered disaster.
In addition to these coverages, policies might also offer protections such as cyber liability coverage or commercial auto coverage. Cyber liability may be important if a business has any online presence, and commercial auto is usually needed anytime a business has a commercially registered vehicle.
Do business owners policies provide professional liability coverage?
Professional liability coverage might insure against errors made in a policyholder’s work
Because professional liability is a coverage that only some business owners need, it’s usually not included in a BOP. A commercial package policy (see below) may be needed in this case.
Do business owners need commercial auto coverage when using their own vehicles?
When a personal vehicle doubles for work driving, business owners may need some form of commercial auto coverage. They might be able to get this through an endorsement that’s added onto their personal auto policy, though.
If sufficient commercial auto isn’t available through a personal policy endorsement, it can likely be obtained through a BOP policy.
Are business owners policies and commercial package policies the same?
Business owners policies and commercial package policies are two of the most common types of insurance that businesses get. They both combine multiple coverages together, but are generally used for different purposes:
- BOPs are mainly for small businesses with basic insurance needs. They offer fairly standard coverages at an affordable rate.
- CPPs are mainly for businesses with more specialized or more extensive insurance needs. These policies typically offer many more coverage options.
If a business is unsure which type of policy is best for them, an insurance agent who specializes in small business insurance will be able to assist. They’ll have the expertise necessary to determine whether a BOP or a CPP would be better for a particular situation.
How are BOP premiums calculated?
Premiums for BOP insurance can vary substantially, as they’re based on many different details. A business’s location, industry, operations, size and other factors can all impact cost.
Despite variances in premiums, however, these policies tend to be quite affordable even on a small business’s budget. BOP insurance is designed to provide important and affordable coverage for small businesses.
To find out how much a BOP will be for their small business, business owners can work with an independent insurance agent. Independent agents are able to compare quotes from several insurance companies, so it’s easy to find out how different insurers will calculate premiums.
Where can Massachusetts businesses find a business owners policy?
For help finding a business owners policy that’ll serve your small business well, contact the independent insurance agents at Platinum Insurance. Our agents have assisted many small businesses with their insurance needs, and we’ll make sure you find a BOP that’ll protect your Massachusetts business well.
